Does Luxury Indicate Sustainability? An Analysis of the Maldives
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EJBO Electronic Journal of Business Ethics and Organization Studies Vol. 16, No. 1 (2011)
Does Luxury Indicate Sustainability?
An Analysis of the Maldives
Blanca de-Miguel-Molina Introduction into existing plans and programmes
María de-Miguel-Molina (Nurse and Moore, 2005). For example,
Mariela Rumiche-Sosa Tourism is a major economic driver in municipal solid waste is the most signifi-
many small islands (Shareef and McA- cant waste stream in many small islands
leer, 2005; Nurse and Moore, 2005; Belle (Georges, 2006). In this sense, small is-
Abstract and Bramwell, 2005; McElroy, 2006; lands could set an example for the rest of
The environment of small tourism Clampling and Rosalie, 2006). However, the world (Roper, 2005).
islands, as climate and coastal the economic and environmental aspects Up until now, studies about small is-
resources, make them favourable of tourism need to be balanced (Hend- lands, including the Maldives, have not
erson, 2001) to guarantee long-term ben- analysed every island separately. When
locations for luxury resorts. However, studying sustainable tourism, indicator
efits to communities (UNWTO, 2004).
tourism can cause a threat to these While tourism can bring many economic analyses are based on national data so
islands’ local environment. Thus, the advantages to small islands, there are as to compare different countries (Buzz-
Maldives government has developed many examples of rapid, unplanned tour- igoli, 2009). Thus, we have not found any
regulations to ensure a balance ist development which have produced studies that focus on the eco-friendly im-
between resource protection and over-reliance on this one industry, en- age that the resorts in the Maldives give
vironmental degradation and excessive to tourists or on whether luxury and sus-
use. This study examines, from the tainable tourism are compatible in the
concentration at the lower quality end of
conceptual framework of sustainable the mass tourism market. As a result, in Maldives.
tourism, whether luxury indicates the 1990s many islands started to remedy Thus, our paper’s goal is to examine,
sustainability in the Maldives, that this situation by showing greater com- from a conceptual sustainable tourism
is, if there is a link between luxury mitment to planning, upgrading their fa- framework, whether luxury indicates
and sustainability. To perform this cilities and developing new markets (Bull sustainability in the Maldives, that is, if
and Weed, 1999). there is a link between luxury resorts and
analysis we have studied 91 deluxe sustainability.
Both internal (tourism impact: Zu-
and non-deluxe resorts in the bair et al., 2010; Belle and Bramwell,
Maldives using content analysis 2005; Georges, 2006) and external (cli- Small islands and the environment
methodology. Then we have applied mate change: Briguglio, 1995; Belle and
a Principal Components Analysis Bramwell, 2005; Roper 2005) factors Despite the literature on these small is-
to determine whether the resorts can have an impact on the environment lands (Figure 1), there is no common
of small islands, which can reduce the definition about them in either quantita-
can be grouped according to their attractiveness of these coastal tourism tive or qualitative terms. Authors refer to
tourist attractions and sustainable destinations and may reduce the number them as SIDS – Small Island Developing
activities. Results show that we of people who want to visit small is- States (Nurse and Moore, 2005; Roper,
can not affirm that luxury implies lands in tropical and subtropical regions 2005; Fry, 2005; Belle and Bramwell,
sustainability, but we might (Nurse and Moore, 2005). In an attempt 2005; Clampling and Rosalie, 2006; Van
conclude that both are possible. to preserve its local ecosystem, the Mal- der Velde et al, 2007) or SITEs – Small
dives signed all the major international Island Tourism Economies (Shareef and
agreements promoted by the UN Envi- McAleer, 2005; McElroy, 2006). McElroy
Keywords ronment Programme, and the Maldives and Albuquerque’s definition of small is-
Small islands, Sustainable Tourism, Government established specific regula- lands (1998) included islands that have
Business Social Responsibility, tions to develop sustainable tourism: the less than 500,000 inhabitants and a sur-
Environmental Protection and Preserva- face area of less than 2,000 km2 while
Environmental Impact of McElroy (2006) included those with a
tion Act of Maldives (Maldives Govern-
Recreational Activities ment, 1993), the Tourism Act of Maldives population of less than one million in-
(Maldives Government, 1999) and the habitants in a land area of less than 5,000
Regulation on the Protection and Con- km2.
servation of Environment in the Tourism Scheyvens and Momsen (2008) sum-
Industry (Maldives Government, 2006). marized the features that different authors
Small island states should readily ac- have noted in the cases of the islands that
cept on one hand that they are unlikely have been studied. These characteristics
to be in a position to access substantial are related to their economic and envi-
external resources to adapt their model ronmental vulnerabilities (McElroy and
of tourism to an eco-tourism model and Albuquerque, 1998), including the ef-
on the other, that their strategies to com- fects on tourism activities associated with
bat climate change should be integrated scarce natural resources and waste man-
21 http://ejbo.jyu.fi/EJBO Electronic Journal of Business Ethics and Organization Studies Vol. 16, No. 1 (2011) FIGURE 1 Literature that combine small islands, environment and/or tourism. Source: Author’s own from the literature analysed. agement. Moreover, in small islands like the Maldives, where luxury. However, positive implementations in the luxury hotel1 most resorts are luxury resorts, although tourism is a major sector include, for example, the first eco-friendly luxury resort in factor for development as small islands have little industry, it the Mexico Caribbean, the Hacienda Tres Ríos Resort, located may create threats to their environment (Sathiendrakumar and in the heart of the Riviera Maya. Tisdell, 1989; Yahya, Parameswaran and Sebastian, 2005). However, vulnerabilities may be used to show the capabilities From economy to sustainable tourism that small islands have to develop their economies through tour- The importance of tourism as an economic activity in small is- ism, which in many cases is their main economic activity (Nurse lands has been referenced in various studies. Shareef and McA- and Moore, 2005; McElroy 2006). The Maldives is a group of leer (2005) indicated that small islands tend to specialize in small isolated islands which have become an attractive tourist one or two economic activities, with tourism being the primary destination for their exoticism (Scheyvens and Momsen, 2008) sector (Nurse and Moore, 2005; McElroy 2006), which usually and biodiversity (Clampling and Rosalie, 2006), including coral includes intensive labour (Van der Velde et al, 2007). Authors reefs. Hence, the relationship between biodiversity protection such as Clampling and Rosalie (2006), and Belle and Bramwell and sustainable tourism is a major issue in small islands (Fry, (2005) considered that there are few economic alternatives to 2005), as the lack of protection would affect their tourism rev- tourism in small islands. In addition, the tourism resources enue in the future (Nurse and Moore, 2005; Belle and Bramwell, that tend to be concentrated on the coast make these islands 2005). particularly vulnerable to climate change impacts (Belle and In 1987, the UN World Commission on Environment and Bramwell, 2005). The advantages of small tourist islands are the Development created the term Sustainable Development to re- climate and coastal resources, usually sandy beaches (Belle and fer to development that meets the needs of the present without Bramwell, 2005). However, the adverse effects of this tourism compromising the ability of future generations to meet their are beach erosion, lagoon salinity, reef damage, water and en- own needs. Later, in 2004, the UNWOT also established the ergy consumption, and waste disposal (Scheyvens and Momsen, definition of Sustainable Tourism as an enterprise that achieves 2008). an effective balance among the environmental, economic, and Scheyvens and Momsen (2008) stated that isolated small is- socio-cultural aspects of tourism to guarantee long-term ben- lands are a tourist attraction because they are the most exotic efits to communities. Recently, climate change (including glo- destination available. They refer to the Maldives as an example, bal warming) has been added to these definitions so that sus- with its strategy of “one island, one resort”, which reduces the tainable tourism now has a “quadruple bottom line” (Buzzigoli, number of tourists who share the island. The attractiveness of 2009), although there is no common thinking about the reality the islands explains the various activities that have been offered of sustainable tourism and even less so if we try to link this to to attract tourists. Bull and Weed (1999) refer to water sports 1 According to the UNWTO (2001, p. 331), luxury tourism includes five-star hotels (deluxe hotels) and four-star hotels (first class hotels). Thus we have centred in the first group in our analysis about the Maldives. 22 http://ejbo.jyu.fi/
EJBO Electronic Journal of Business Ethics and Organization Studies Vol. 16, No. 1 (2011)
as an alternative form of tourism for small islands, as they take the EarthCheck certification which can be checked on the EC3
advantage of their coastal resources. The activities cited in the website or included on hotel and resort websites. However, small
case of Malta, for example, but which are also found in other island resorts normally try to attract tourists with exotic com-
islands such as the Maldives, include diving, yachting, windsurf- munication. For example, according to the Maldives Tourism
ing, dinghy sailing, water skiing and scuba-diving. However, the Promotion Board (MTPB), which is responsible for promoting
characteristics of the islands are different, which means we need the tourist industry in the Maldives, visiting the Maldives is like
to take into account the negative effects that some of these ac- going to paradise: tropical islands with infinite shades of blue
tivities can have if, for example, they damage coral reefs. Fotiu et and turquoise and dazzling underwater coral gardens. This is
al. (2002) believed that tourism can be a solution to fund ma- also a normal message aimed at attracting luxury tourism. Ac-
rine and coastal protected areas of small islands, but that this re- cording to Low (2010), “luxury hotels for some guests, would
quires the involvement of both public and private organizations act as a vehicle for this escapism through their more refined and
to protect the natural environment as for many of these stake- aesthetically pleasing designs”. Although luxury resorts includes
holders it is the islands’ main attraction. One way to encourage five-star hotels (deluxe hotels) and four-star hotels (first-class
hotels to provide such protection is the utilization of an ecolabel hotels) (UNWTO, 2001), in our analysis we have selected the
or a certificate that also warns customers about what to expect first group as half of the resorts in the Maldives are deluxe.
before booking. However, not all certificates have the same pres- Tourism to the Maldives began in 1972 and, since then, it has
tige and sometimes there is a difference in information between grown quickly according to a national expansion plan. However,
hotel and resort websites and the certification websites. this kind of tourism, despite being a factor for development in
less developed countries, has been shown to create threats to
From biodiversity to sustainable tourism their environment. The key is thus how this type of destinations
Since 1990 some of the literature on small islands has focused can combine a bipolar view to develop their economies without
on their economic and environmental vulnerabilities (Briguglio, destroying their environment ( Jamal and Lagiewski, 2006). In
1995; Nurse and Moore, 2005; Roper, 2005; Chasek, 2005; Fry, the Maldives, most of the resorts offer scuba diving as the most
2005; Belle and Bramwell, 2005; Van der Velde et al, 2007), whilst important leisure service, while fishing yellow tuna, which is
other works have centred on socio-cultural factors (Clampling the food of the main animals in extinction (up to 30 percent of
and Rosalie, 2006). shark species are threatened), is the second main economic ac-
Briguglio (1995) noted some environmental disadvantages for tivity of the country. On the other hand, efforts are being made
small islands. Global warming and rising sea levels, along with to revive reefs not only because they are a tourism attraction
erosion by waves and wind, end up reducing land surface area, but also because they constitute a natural protection barrier for
especially in “low-lying coral atoll small islands”. Aware of their these islands.
vulnerability to climate change, some SIDS created a coalition The current President, Mohamed Nasheed, suggested the
in 1990 called AOSIS, the Alliance of Small Island States, to idea of a Wild Tourism Fund to be supported with the proceeds
establish a work schedule in the planning and implementation of tourism. He has begun to divert a portion of the country's bil-
of sustainable development. Tourism resources were identified lion-dollar annual tourist revenue into buying a new homeland
as being one of their priority areas (Chasek, 2005). In 2004, the as an insurance policy against climate change which threatens
new focus was the relationship between biodiversity protection to turn the 300,000 islanders into environmental refugees. The
and sustainable tourism (Fry, 2005). This protection includes Government is encouraging forestation to prevent beach erosion
coral reefs, one of the attractions of small islands, whose loss can and is backing a plan to clean litter and debris from the country's
affect income-generating activities, such as diving and snorkel- coral reefs - a natural barrier against tidal surges. Environmental
ling (Nurse and Moore, 2005; Belle and Bramwell, 2005). science is taught in all national schools in the Maldives. All new
Clampling and Rosalie (2006) indicated that resources for resorts are subjected to a rigorous environmental impact study
the environmental conservation and protection of biodiversity and developers/planners are restricted to building on just 20%
of small islands are dependent on tourism revenues, which in of the islands.
turn depend on the biodiversity of the islands. However, their Today, tourism in the Maldives provides over 22,000 jobs.
size means that the per capita costs of environmental conserva- This means that less global warming and fewer environmental
tion and biodiversity protection are high. problems are issues of major concern to the Maldivian people.
Tourism involves a high consumption of drinking water, However, environmental premises are not the only concerns
which is a limited resource in most small islands (Belle and which must necessarily extends to the local people’s right to
Bramwell, 2005). In addition, tourists staying in hotels gener- work.
ate more trash, which can hinder waste management (Georges, Tourism, the Maldives’ largest industry, accounted for around
2006). In the case of water, one solution would be to desalinate 28% of GDP in 2009. Almost over 90% of government tax rev-
seawater (Stuart, 2006). enue comes from import duties and tourism-related taxes. The
Finally, Roper (2005) considers the problem of global warm- Maldivian Government began an economic reform programme
ing in the case of the Maldives. He emphasizes the use of re- in 1989 initially by lifting import quotas and opening up some
newable energy by small islands and the benefits it would bring, exports to the private sector. It has subsequently liberalized regu-
such as the conservation of tourism resources. lations to allow more foreign investment. In late December 2004,
as a result of the tsunami, the Maldives GDP contracted but a
rebound in tourism, post-tsunami reconstruction, and develop-
Luxury resorts in small islands: the Maldives case ment of new resorts helped the economy recover quickly. Di-
Even though some travellers are not yet aware of the risks they versifying beyond tourism and fishing, reforming public finance,
are going to subject nature to during their trips, there is a myriad and increasing employment are the major challenges facing the
of information available about being environmentally friendly on government. However, the Maldivian authorities worry about
their travels (the so-called ‘Responsible Traveller’). For example, the impact of erosion and possible global warming on their low-
the EC3 Global certifies sustainable tourism organizations with lying country; 80% of the area is 1 metre or less above sea level
23 http://ejbo.jyu.fi/EJBO Electronic Journal of Business Ethics and Organization Studies Vol. 16, No. 1 (2011)
FIGURE 2 Visitors to the Maldives by continent (2008). Source: Author’s own from Ministry of Planning and National Development data, 2009.
FIGURE 3 European visitors to the Maldives by country (2008). Source: Author’s own from Ministry of Planning
and National Development data, 2009.
(Ministry of Planning and National Development, 2009). first-ever presidential elections under a multi-candidate, multi-
According to the Department of Immigration & Emigration, party system were held in October 2008. A Supreme Court was
Ministry of Tourism, Arts and Culture of Maldives (Ministry of established, judicial power was separated from state power and
Planning and National Development, 2009), in 2008, the major- legislative power is now mainly reached by popular vote.
ity of tourists came from Europe (Figure 2). However, before this new democratic period, in order to pre-
Within Europe, most tourists come from Italy, United King- serve its ecosystem, the Maldives signed all the most important
dom, Germany, Russia and France (Figure 3). international agreements promoted by the UN Environment
Thus, we can say that the Maldives main target groups are Programme, and the Maldives Government established specific
Europeans who come from the aforementioned countries. This regulations to develop sustainable tourism: the Environmental
is relevant because European tourists are expected to have the Protection and Preservation Act of Maldives (1993), the Tour-
necessary knowledge about environmental protection. ism Act of Maldives (1999) and the Regulation on the Protec-
In relation to the local labour market, although literacy in tion and Conservation of Environment in the Tourism Industry
Maldives has been improved and specific higher education stud- (2006). However, as we can see, these acts and regulations were
ies in tourism are available, trained specialist employees are still quite basic.
young and many people working in the tourism industry are Regulation does not seem to be sufficient for the future con-
expatriates. According to a survey held in 2006 to study the hu- servation of the Maldives’ ecosystem. Since 2008, this regula-
man resource situation in the Maldives tourism industry, which tion has had less power due to weak application as a result of
was answered by 92.5% of the resorts operating at that time, the the inadequacies of the Maldives environmental impact assess-
number of locals employed in resorts is only higher than the ment (EIA) procedures. According to Zubiar, Bowen and Elwin
number of foreigners at an operational level. The highest sala- (2010), the procedure lacked transparency, responsiveness and
ried jobs, which correspond to the managerial and supervisory accountability.
echelons, are occupied by expatriates. The number of female Thus, the Third National Environment Action Plan (2009-
employees in the industry is still marginal with locals contribut- 2013), conducted by the Ministry of Housing, Transport and
ing only 2% to the workforce. The bed-staff ratio stood at 1:1, Environment, Government of the Maldives, includes, among
however, the up-market resorts had a higher ratio of 1:4 (Minis- other goals: to reduce climate-related risks in the tourism sec-
try of Tourism & Civil Aviation of Maldives, 2008). tor, to develop regulations and conflict resolution mechanisms
for resource use among competing industries – such as tourism
– to ensure a balance between resource protection and resource
Environmental objectives in the Maldives
usage, and to develop environmental guidelines for the selection
In 1968, the Maldives Sultanate was replaced by a Republic al- of islands for resort development. These goals will need to be
though political parties were not legalized until 2005. Some key coordinated with another objective in mind: to strengthen EIAs
indicators in the Maldives have improved since then (education, to ensure that all significant impacts associated with new devel-
employment) or at least have been made public. In June 2008, opments are understood and accounted for, taking stakeholders’
a constituent assembly - the "Special Majlis" - finalized a new participation into consideration, as recommended by Zubair et
constitution, which was ratified by the president in August. The al. (2010).
24 http://ejbo.jyu.fi/EJBO Electronic Journal of Business Ethics and Organization Studies Vol. 16, No. 1 (2011)
ries when an activity or service is not sustainable have a negative
Moreover, the Maldives will need to review its Regulation on value. Furthermore, we assumed that the Maldives is an exotic
the Protection and Conservation of Environment in the Tour- destination and does not have massive tourism (at least not the
ism Industry (2006) and increase its penalties. Even if its GNP cases of mass tourism which McElroy and Albuquerque studied
is higher than other South Asia countries (such as India) it is in the small Caribbean islands in 1998) where, for example, too
way below that of developed countries, such as members of the many rooms detract from the exotic view of the resort (Schey-
European Union or the USA. For big companies, it is “cheap” to vens and Momsen, 2008).
contaminate because the highest fine is 100,000.00 MRF which Taking into account the potential massive tourism of the is-
is less than 6,000 euros. The next step is to revoke a resort’s li- lands we mean to avoid seeking for mass tourism. That is the
cense, but as there is a lack of monitoring mechanisms this is “creation of mass demand for specific locations or experiences,
quite unlikely. as well as the accommodation and transport to meet such neces-
For this reason, many measures will depend on the resorts’ sary demand” (UNWTO, 2001, p. 333).
corporate social responsibility (CSR), and thus we have checked This concept leads to tourism carrying capacity: “composite
which resorts report specific eco-friendly initiatives to their visi- early warning measures of key factors affecting the ability of the
tors. site to support different levels of tourism” (UNWTO, 2001, p.
293). Anyway, the concept has reached several interpretations.
For example, MacLeod and Cooper (2005) refer to four catego-
Study of luxury resorts in the Maldives
ries: physical, ecological, social, and economic2. In our study, we
Data collection and research methodology found that the Maldives Government has fixed a physical carry-
In 2008 there were 94 resorts in the Maldives, with a total of ing capacity with only 2% of islands potentially to have resorts.
19,860 beds (Tourism Yearbook, 2009). The list of resorts to In the case of islands, land use/spatial planning is a process par
study and some additional data were obtained from the Mal- excellence to implement carrying capacity assessment (Europe-
dives’ Ministry of Tourism statistics and the Tourism Yearbook an Union, 2001, p. 23). Anyway, we think that spatial carrying
2009 in particular. We rejected 3 resorts that currently do not capacity could also be related to ecological and social carrying
exist (at least online). 44% of all the resorts are luxury (deluxe) capacities in the sense that if the islands maintain their isolation
class. The remaining data were obtained using a content analysis focus to preserve paradise image, environment will be benefited
methodology of the Maldives resorts’ websites. Data was com- and harmful effects of tourism will decrease. For this reason, we
piled from November 2009 to March 2010. The type of content have selected some of the thematic areas that are supposed to
analysis used was a conceptual analysis (Cohn, 2009), which have high priority while analyzing physical-ecological indicators
studies the presence of concepts and not the frequency with of the islands (European Union, 2001, p. 25): Natural environ-
which they appear. The selection of concepts, and some vari- ment and biodiversity, Energy, Water, Waste, Tourist infrastruc-
ables, was carried out before the websites were searched based ture and Land.
on empirical studies and existing theory on sustainable tourism In our study we reviewed the potential of sustainable tourism
and small islands (McElroy and Albuquerque, 1998; Bull and in the Maldives, depending on the behaviour of their resorts,
Weed, 1999; Fotiu et al., 2002; Fry, 2005; Belle and Bramwell, and particularly deluxe resorts. Finally, it should be noted that
2005; Nurse and Moore, 2005; Roper, 2005; Georges, 2006; the diving variable has not been included in the statistical analy-
Stuart, 2006; Scheyvens and Momsen, 2008). For example we sis because it is offered by all the resorts and this fact generates
selected the use of an ecolabel based on Fotiu et al. (2002), waste difficulties for statistical calculations.
management from Georges (2006), or renewable energy from Subsequently, to calculate the relationships between the vari-
Roper (2005). In the case of water activities, we included some ables for the 91 deluxe resorts together, we used the Principal
of the activities that Bull and Weed (1999) refer for Malta, tak- Component Analysis method (Hair et al, 1999; Peña, 2002)
ing into account that some of them could harm the environment with the SPSS program (Pérez, 2001). The analysis results are
of the Maldives. shown in tables 2, 3 and 4.
Then the variables related to these concepts were looked up Within the concept of “Environmental Policy” we have in-
on the resorts’ websites from November 2009 to March 2010, cluded the use of an ecolabel for tourist accommodation services,
taking into account Weber’s criteria (1990) that “a variable is taking into account the concept of ecolabel given by the Euro-
valid to the extent that it measures or represents what the in- pean Union (2010). The standard criterion for the certification
vestigator intends it to measure”. Therefore, we did not use the of an Eco-Resort will depend on its design and construction,
standard indicators proposed by various organizations as a ref- water conservation, liquid waste management, solid waste man-
erence because they do not fit our objectives (Buzzigoli, 2009) agement, energy production and conservation, natural areas and
(i.e. United Nations environment indicators for SIDS include conservation, lawn and gardens, protection of flora and fauna,
also CO2 emissions, energy consumption per capita and threat- contamination of air, water and soil, environmental education
ened species). and quality standards. In our study, we found 7 deluxe resorts or
The selected variables are shown in the following table (Ta- 15% (2 of them belonged to the same chain) that are supposedly
ble 1). In theory, the activities and services offered are good for eco-friendly and have one or more environmental international
tourism, but this does not mean that they are necessarily good awards and certifications and 2 non-deluxe resorts or 4% with
for sustainable tourism. Thus, the values given to the catego- an ecolabel (Table 2). However, we also have to point out that
2
Physical carrying capacity is a measure of the spatial limitations of an area and is often expressed as the number of units that an area can
physically accommodate. Ecological carrying capacity is a measure of the population that an ecosystem can sustain, defined by the population
density beyond which the mortality rate for the species becomes greater than the birth rate. In a recreational context, ecological carrying capacity
can also be defined as the stress that an ecosystem can withstand, in terms of changing visitor numbers or activities, before its ecological value is
unacceptably affected. Social carrying capacity is a measure of crowding tolerance. Economic carrying capacity defines the extent to which an area
can be altered before the economic activities that occur in the area are affected adversely.
25 http://ejbo.jyu.fi/EJBO Electronic Journal of Business Ethics and Organization Studies Vol. 16, No. 1 (2011)
TABLE 1 Definition of variables and categories
Concept Variable Categories
Category Deluxe If the resort has 5 or more stars : 1; Others: 0
Activities A1: Scuba diving If the resort offers this activity: -1; If it doesn’t offer it: 0
A2: Windsurfing If the resort offers this activity: 1; If it doesn’t offer it: 0
A3: Catamaran Sailing If the resort offers this activity: -1; If it doesn’t offer it: 0
A4: Parasailing If the resort offers this activity: -1; If it doesn’t offer it: 0
A5: Canoeing If the resort offers this activity: 1; If it doesn’t offer it: 0
A6: Water Skiing If the resort offers this activity: -1; If it doesn’t offer it: 0
A7: Wake boarding If the resort offers this activity: -1; If it doesn’t offer it: 0
A8: Ringo Riding If the resort offers this activity: -1; If it doesn’t offer it: 0
A9: Banana Riding If the resort offers this activity: -1; If it doesn’t offer it: 0
A10: Submarine diving If the resort offers this activity: -1; If it doesn’t offer it: 0
A11: Jet Skiing If the resort offers this activity: -1; If it doesn’t offer it: 0
A12: Aerobics If the resort offers this activity: 1; If it doesn’t offer it: 0
A13: Badminton If the resort offers this activity: -1; If it doesn’t offer it: 0
A14: Tennis If the resort offers this activity: -1; If it doesn’t offer it: 0
A15: Beach Volley If the resort offers this activity: 1; If it doesn’t offer it: 0
A16: Excursion If the resort offers this activity: 1; If it doesn’t offer it: 0
A17: Big Game Fishing If the resort offers this activity: -1; If it doesn’t offer it: 0
Services/features S&F1: Air Con. in rooms If the resort has it: -1; If it doesn’t have it: 0
S&F2: Spa If the resort has it: -1; If it doesn’t have it: 0
S&F3: Jacuzzi If the resort has it: -1; If it doesn’t have it: 0
S&F4: Sauna If the resort has it: -1; If it doesn’t have it: 0
S&F5: Swimming Pool If the resort has it: -1; If it doesn’t have it: 0
S&F6: Water Villas If the resort offers this service : -1; If it doesn’t offer it: 0
S&F7: Online Brochure If the resort has it: 1; If it doesn’t have it: 0
S&F8: Other languages in addition to English If the resort has it: 1; If it doesn’t have it: 0
S&F9: Internet If the resort has it: 1; If it doesn’t have it: 0
S&F10: All inclusive If the resort has it: 1; If it doesn’t have it: 0
S&F11: Medical care If the resort has it: 1; If it doesn’t have it: 0
S&F12: Child care/ children’s area If the resort has it: 1; If it doesn’t have it: 0
S&F13: Distance from Airport over average If the distance is over the total average: 1; If the distance is under the
total average: 0
S&F14: Number of beds over average If the number of beds is over the total average: -1; If the number of
beds is under the total average: 0
Environmental Policy EP1: Ecolabel If the resort has it: 1; If it doesn’t have it: 0
EP2: Water Management If the resort has it: 1;If it doesn’t have it: 0
EP3: Waste Management If the resort has it: 1; If it doesn’t have it: 0
EP4: Alternative energy If the resort has it: 1; If it doesn’t have it: 0
Source: Author’s own from website content analysis.
we checked other information on the websites (water manage- tions, such as the Green Globe certification, have changed or
ment, waste management and alternative energy) because some have disappeared on a new browsing of the websites in June
resorts do not have a specific certification or even if they do not 2010. For example, the Green Globe certification is being re-
all the awards and certifications which appear are trustworthy. placed by EarthCheck and within this there are different levels
On the other hand, some environmental awards and certifica- of certification, from partial to full requirements.
26 http://ejbo.jyu.fi/EJBO Electronic Journal of Business Ethics and Organization Studies Vol. 16, No. 1 (2011)
Results On the basis of the data input into the SPSS programme, the
mean, standard deviation, variance, principal components (Ta-
First of all, from the data obtained from the variables of the 91 bles 3 and 4) and correlation matrices were obtained. We per-
resorts, we confirmed the existing differences between a luxury formed a separate analysis for deluxe hotels and for non-deluxe
and a standard resort. It should be pointed out that in Table 2 hotels. In the analysis of the relationships between variables, 11
we can see that luxury resorts offer proportionately more activi- factors explained 81% and 77% of the total variance of indicators
ties and services that are not sustainable, even though the 7 re- included in the deluxe resort analysis and the non-deluxe resort
sorts (2 of them were counted as one) that are more sustainable analysis. The communalities had initial data equal to 1 and ex-
and environmentally responsible are also found in this category. tractions were higher than 0.68, thus all the variables reached
This means that sustainability depends on the control of these acceptable levels of explanation. The coefficients with absolute
activities and not on offering them. values of less than 0.45 were suppressed. Factor loadings and
TABLE 2 Differences between deluxe resorts and others
Variable 5 stars or more % Hotels ≤ 4 stars %
hotels and resorts
A1: Scuba diving 40 100% 51 100%
A2: Windsurfing 38 95% 47 92%
A3: Catamaran Sailing 37 93% 47 92%
A4: Parasailing 9 23% 7 14%
A5: Canoeing 37 93% 45 88%
A6: Water Skiing 24 60% 27 53%
A7: Wake boarding 21 53% 13 25%
A8: Ringo Riding 13 33% 11 22%
A9: Banana Riding 18 45% 16 31%
A10: Submarine diving 7 18% 7 14%
A11: Jet Skiing 6 15% 5 10%
A12: Aerobics 23 58% 22 43%
A13: Badminton 21 53% 33 65%
A14: Tennis 23 58% 20 39%
A15: Beach Volley 33 83% 48 94%
A16: Excursion 39 98% 50 98%
A17: Big Game Fishing 31 78% 32 63%
S&F1: Air Con. in rooms 40 100% 49 96%
S&F2: Spa 32 80% 30 59%
S&F3: Jacuzzi 25 63% 16 31%
S&F4: Sauna 18 45% 14 27%
S&F5: Swimming Pool 29 73% 17 33%
S&F6: Water Villas 35 88% 33 65%
S&F7: Online Brochure 16 40% 8 16%
S&F8: Other languages in addition to English 13 33% 8 16%
S&F9: Internet 30 75% 35 69%
S&F10: All inclusive 6 15% 13 25%
S&F11: Medical care 8 20% 6 12%
S&F12: Child care/ children’s area 11 28% 5 10%
S&F13: Distance from Airport over average 20 50% 31 61%
S&F14: Number of beds over average 15 38% 20 39%
EP1: Ecolabel 6 15% 2 4%
EP2: Water Management 5 13% 1 2%
EP3: Waste Management 5 13% 1 2%
EP4: Alternative energy 3 8% 1 2%
Source: Author’s own from website content analysis.
27 http://ejbo.jyu.fi/EJBO Electronic Journal of Business Ethics and Organization Studies Vol. 16, No. 1 (2011)
TABLE 3 Components Matrix for Deluxe Resorts
Variables Mean SD Components
1 2 3 4 5 6 7 8 9 10 11
A2 .9500 .22072 -.499 .680
A3 -.9000 .30382 -.512
A4 -.2250 .42290 .583
A5 .9250 .26675 -.486
A6 -.6000 .49614 .739
A7 -.5250 .50574 .763
A8 -.3250 .47434 .572 .489
A9 -.4500 .50383 .728
A10 -.1750 .38481 .465
A11 -.1500 .36162 .466
A12 .5750 .50064 -.519
A13 -.5250 .50574 .551
A14 -.5750 .50064 .460
A15 .8250 .38481 -.597
A16 .9750 .15811 .743
A17 -.7750 .42290 .596
S&F2 .8000 .40510 -.522
S&F3 -.6250 .49029 .699
S&F4 -.4500 .50383 .713
S&F5 -.7250 .45220 .663
S&F6 -.8750 .33493 .480
S&F7 .4000 .49614 .485
S&F8 .3250 .47434 .454 -.464
S&F9 .7500 .43853 .533 -.495
S&F10 .1500 .36162
S&F11 .2000 .40510 .506 .519
S&F12 .2750 .45220 .517
S&F13 .5000 .50637 -.775
S&F14 .2750 .96044 .489
EP1 .1500 .36162 .751 -.532
EP2 .1250 .33493 .844 -.481
EP3 .1250 .33493 .844 -.481
EP4 .0750 .26675 .068 .698
Variance 18.587 13.920 8.942 7.559 6.407 5.377 4.849 4.365 4.082 3.777 3.412
explained
(%)
Cumulative 18.587 32.507 41.449 49.008 55.415 60.792 65.641 70.006 74.089 77.865 81.277
variance
explained
(%)
Cumulative 20.637 31.030 40.058 46.823 53.032 58.018 62.883 66.920 70.767 73.941 77.002
variance
explained
(%)
Coefficients lower than 0.45 are not shown.
Extraction method: Principal Component Analysis
Source: Compiled from SPSS 16
28 http://ejbo.jyu.fi/EJBO Electronic Journal of Business Ethics and Organization Studies Vol. 16, No. 1 (2011)
TABLE 4 Components Matrix for Non-Deluxe Resorts
Variables Mean SD Components
1 2 3 4 5 6 7 8 9 10 11
A2 .9216 .27152 .457
A3 -.9216 .27152 .485 -.465
A4 -.1373 .34754 .659
A5 .8824 .32540 .481
A6 -.5294 .50410 .460 .530
A7 -.2549 .44014 .744
A8 -.2157 .41539 .816
A9 -.3137 .46862 .684
A10 -.1373 .34754 .483
A11 -.0980 .30033 .622
A12 .4314 .50020
A13 -.6471 .48264 .459
A14 -.3922 .49309 .589
A15 .9412 .23764 -.579
A16 .9804 .14003 .450
A17 -.6275 .48829
S&F1 -.9608 .19604
S&F2 .5882 .49705 .684
S&F3 -.3137 .46862 .554
S&F4 -.2745 .45071 .583
S&F5 -.3333 .47610 .476 -.552
S&F6 -.6471 .48264
S&F7 .1569 .36729 .644
S&F8 .1569 .36729 .629
S&F9 .6863 .46862 .452
S&F10 .2549 .44014
S&F11 .1176 .32540 .657
S&F12 .0980 .30033 -.573
S&F13 .6078 .49309 -.459 .547
S&F14 .2157 .98618 .620
EP1 .0392 .19604 -.645
EP2 .0196 .14003 -.618 .696
EP3 .0196 .14003 -.618 .696
EP4 .0196 .14003 -.618 .696
Variance 20.637 10.393 9.028 6.765 6.209 4.986 4.865 4.037 3.848 3.174 3.061
explained
(%)
Cumulative 20.637 31.030 40.058 46.823 53.032 58.018 62.883 66.920 70.767 73.941 77.002
variance
explained
(%)
Coefficients lower than 0.45 are not shown.
Extraction method: Principal Component Analysis
Source: Compiled from SPSS 16
29 http://ejbo.jyu.fi/EJBO Electronic Journal of Business Ethics and Organization Studies Vol. 16, No. 1 (2011)
percentages of total variance explained by the factors are includ- tourism (Fry, 2005), as part of the exoticism of the islands is due
ed in Tables 3 and 4. The results show that dimensions related to their biodiversity.
to sustainable tourism are strongly related, i.e. the resorts that However, the Maldives, like many other small islands, has a
have water and waste management also have some kind of eco- huge economic dependence on tourism, thus the key lies in how
label or use alternative energy. to combine economic prosperity and biodiversity, and this is
In the study of the component matrices we paid special atten- part of the sustainability tourism concept (Bull and Weed, 1999;
tion to the variables that had factor loads with values of ±0.45 or Belle and Bramwell, 2005; Clampling and Rosalie, 2006). Thus,
greater (Tables 3 and 4). The components that generated more this study has tried to reflect how the resorts of the Maldives
consistent results in the deluxe resort group were 1, 2, 3, 4, 5 approach the dilemma between tourism and sustainability. Al-
and 9 (Table 3). Component 1 refers to the activity and serv- though the Maldives signed all the most important internation-
ice-related variables. It would seem logical for deluxe resorts to al agreements promoted by the UN Environment Programme,
have a large number of both. Component 2 refers to the sustain- and the Maldives Government established specific regulations
able tourism-related variables, i.e. the sensitivity of the resorts to develop sustainable tourism, these acts and regulations were
in the efficient use of water, energy and recycling. However, it quite basic and regulation does not seem to be sufficient for the
related positively to submarine diving. Component 3 is related future conservation of its ecosystem.
to tennis and badminton. These two are related positively with The Third National Environment Action Plan (2009-2013)
the existence of an online brochure that could cater for tourists of the Maldives, includes some goals which aim to reduce cli-
who travel in groups. Component 4 includes the positive rela- mate-related risks in the tourism sector which will need to be
tion between variables such as windsurfing, trips and Internet coordinated by strengthening EIAs to ensure that all the signifi-
access, which could be linked to young tourists. Component 5 cant impacts associated with new developments are understood
shows a relation between the diversity of languages on the web- and accounted for, taking stakeholder participation into consid-
site with longer distances from the airport. Finally, Component eration, as recommended by Zubair et al. (2010).
9 associates two variables (the presence of children’s areas with Our study has been carried out by scanning the websites of
the availability of medical care) positively, and relates canoeing 91 resorts located in the Maldives, from November 2009 to
negatively. March 2010, based on the contents we aimed to find. We ap-
The components that generate the most consistent results in plied a principal component analysis to the data obtained to
the case of non-deluxe resorts are 1, 2, 3, 4 and 5 (Table 4). Com- establish the relationships between variables, and differentiate
ponent 1 includes services and activities which we have consid- between luxury and non-luxury resorts. There were two main
ered as non eco-friendly. Component 2 relates to variables in- conclusions. Firstly, the islands are an exotic destination which
cluded in the environmental policy that the website advertises in is reflected not only in their biodiversity, but also in the charac-
several languages. Component 3 relates to indoor and outdoor teristics, activities and services offered by the resorts. Luxury re-
water sports. Component 4 relates to variables that may indicate sorts have more activities and services in general, although many
more conservative tourism or travel with children, as it relates of them are not sustainable. However, as a second conclusion we
the number of beds, medical care and trips. Finally, Component found that this category of resorts includes the few resorts that
5 seems to relate variables that follow young tourists looking for have an ecolabel and more environmental policy practices. We
windsurfing and the Internet. can not affirm that luxury implies sustainability, but we might
Thus, the relations obtained show the existence of different conclude that both are possible. Therefore, even if at present the
segments of tourists based on the activities and services offered Maldives is an exotic and luxury destination, it has the poten-
by hotels. However, in the case of the sustainable tourism-re- tial to be a luxury sustainable tourism destination. Whether to
lated variables, it seems clear that the main niche is in luxury reach this status will depend on the coordination of the various
(deluxe) tourism where there are a few resorts positioned as stakeholders involved and on the incentives given to the resorts
environmentally-responsible according to their websites. More- in order to make them both sustainable and profitable. At this
over, the relations obtained show that resorts which follow one point, policy makers could enhance the application of environ-
of these sustainable practices often implement several of them. mental policies as an incentive for resorts to be sustainable and
This result is important from the point of view of the possible profitable (Fotiu et al., 2002). Moreover, the luxury resorts that
application of public incentives (Fotiu et al., 2002). would like to attract responsible travellers should communicate
Therefore, the empirical results have demonstrated that lux- their environmental policies through their websites.
ury does not imply directly sustainability, although luxury can The main limitations of our study are, on one hand, that the
go hand in hand with it. The answer is in the deluxe resorts that information provided by the resorts and the Maldives Govern-
have identified a market niche where it is feasible to combine ment on their websites changes frequently, especially as far as
luxury with sustainable tourism. In the case of non-deluxe re- the ecolabels are concerned. Moreover, some of the resorts we
sorts, it is clear that more activities is related to less possibilities contacted informed us about some environmental management
of having an ecolabel. policies that they are developing but which do not appear on
their websites. On the other hand, the regulation and policy
changes carried out by the young democratic Maldives Govern-
Conclusions and limitations ment and its recent newly elected President would seem to bring
Small islands, despite the vulnerabilities that most literature hope for the islands’ future environment.
points out (Briguglio, 1995; McElroy and Albuquerque, 1998; Although both deluxe and non-deluxe resorts offer activi-
Nurse and Moore, 2005; Roper, 2005; Chasek, 2005; Fry, 2005; ties and services that are not sustainable, it seems that deluxe
Belle and Bramwell, 2005; Van der Velde et al, 2007), have taken resorts are more aware about to obtain an ecolabel. But if the
advantage of their geography by using it as an exotic tourist at- Maldives Government wants to reduce tourism impact on its
traction (Belle and Bramwell, 2005; Scheyvens and Momsen, ecosystem, because a lack of protection would affect their tour-
2008). In 2004, the focus in small island literature centred on ism revenue in the future (Nurse and Moore, 2005; Belle and
the relationship between biodiversity protection and sustainable Bramwell, 2005), it should de essential that public and private
30 http://ejbo.jyu.fi/EJBO Electronic Journal of Business Ethics and Organization Studies Vol. 16, No. 1 (2011)
tourism organizations become involved in protecting the natu- Acknowledgements
ral environment of the islands (Fotiu et al., 2002). Policymakers
should consider that planning in advance is more efficient than The authors would like to thank participants at the EBEN Re-
working on environmental degradation. In fact, there are many search Conference 2010 held in Tampere, Finland, and especial-
examples around the world of unplanned tourist development ly Professor Lilian Wanderley of the NHTV, The Netherlands,
in some destinations which has produced tourism market of for all their comments. The Research Conference was attended
lower quality. Taking into account that in the Maldives half of thanks to the financial support of the Faculty of Business Ad-
the resorts are deluxe, its Government should prevent to loose ministration and Management, Universidad Politécnica de Va-
this market by protecting its environment. lencia.
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